What is a Financial Plan?
Financial planning, according to Certified Financial Planner, Financial Planning Standards Board Indonesia, is a process to achieve one's life goals through planned financial management.
The life goals that a person wants to achieve include: getting married, owning a house of their own, owning a private vehicle, performing the pilgrimage, preparing for the cost of children's education, as well as the availability of pension funds in old age.
“Financial Planning helps a person in achieving his life goals”
The benefits of financial planning can be felt by the "direction and meaning" of one's financial decisions. Through financial management, a person can understand how every financial decision made affects other areas of his overall financial situation. By viewing each financial decision as part of a whole, one can weigh the short-term and long-term effects on one's life goals. He can adapt more easily to life's changes and feel more secure because his goals are on the right track.
Financial planning can be used as a tool to meet current and future financial needs.
In the end, someone hopes to achieve the ultimate goal of financial planning, namely financial freedom, which can be interpreted: free from debt, available income streams from investments that have been made, and financially protected from any risks that may occur.
In preparing financial planning, a person will be influenced by the conditions (live event) he is experiencing so that financial planning will be specific. Financial planning is also a continuous and dynamic process. At some point, the plan may require adjustment.
The following are some conditions or events that can affect a person's financial planning:
Marital status (unmarried or married)
Working conditions (already have a permanent job or not)
His age (increasing age)
Family condition (number of dependent family members)
National economic conditions (easy to find work and income)
Education level (education level affects income), and
His health condition (affecting costs and continuity of income).
Changes in one or more of the conditions above can affect the financial planning that a person or family has made. So often one's financial planning must be rearranged (dynamic).
